Shell buys EV charging company Volta from Volta for $169 Million

Oil and gas company Is it possible to buy an electric vehicle charging operator? Through a subsidiary, $169 million. The deal is expected to close in the first quarter of the year and will cost 86 cents per share. This is 18 percent more than Volta’s closing price Tuesday.

Volta’s board approved the deal unanimously. However, it still requires shareholders’ approval. It is subject to regulatory approval as well as other closing requirements. To help Volta through the closing, Shell will lend a loan. Volta had $15.6million in cash and cash-equivalents as of the end, compared to $262.2 million at 2021.

“While there is a huge potential EV infrastructure market opportunity, Volta’s ability to capture that market independently, in difficult market conditions, with ongoing capital constraints was limited,” Volta interim chief executive Vince Cubbage stated. . “Both Volta & Shell have demonstrated their ability to respond to changing customer needs, and this acquisition will bring those experiences together to offer the options that are required as more drivers opt for electric vehicles.

The company maintains more than 3000 charging stations in the US and Europe. . Its DC fast charging stations have been around for a few years. Sponsorships and advertising help to offset the cost. It is not a good idea. Last year, it made its DC fast chargers a premium model. Volta still has more than 2,000 L2 chargers. . The companies stated that there will not be any immediate changes in the driver experience after the deal is closed.

It may seem odd that an oil company would buy an EV charging network. However, this is not the first time Shell has done it. Ubitricity, a UK network, was purchased by Shell. For an undisclosed amount. Hertz and BP merged last year. To set up a charging network within the US.